QuattroR sgr, an Italian independent Private Equity firm investing in turnaround and growth situations of medium-sized to large Italian enterprises, has reached an agreement for the acquisition in partnership with the Marchi Family of a controlling stake in Burgo Group , a leading Italian manufacturer and distributor of graphic and specialty papers. QuattroR will invest in Burgo through a newly incorporated vehicle (so called Newco), QuattroR will invest in Burgo through a newly incorporated vehicle QuattroR and the Holding Gruppo Marchi spa, which is owned by the same-named family, that will own 91% of the Burgo Group after the completion of a Euro 70 million capital increase, entirely financed by QuattroR.
To date, Burgo is controlled by the March Family through Holding Marchi Spa with a 50.59% share, both directly and through Palladio Group spa. Shareholdings in its capital are owned by Mediobanca (22.12%), Unicredit (3.83%), as well as by Allegro, Generali Financial Holdings, and Italmobiliare (11.68% each respectively).
QuattroR and HGM have also reached a separate agreement with Burgo’s minority shareholders, including Mediobanca, Generali and Italmobiliare, who will roll-over their minority stakes in the capital of Burgo Group. Burgo has also reached an agreement with its historical lenders, as well as two new lenders, who will continue to support the Company with a new financing package. The capital increase financed by QuattroR will allow a significant reduction of Burgo’s existing debt, with the consequent successful termination of the restructuring plan under art. 67 of the Italian Bankruptcy Law entered by Burgo in 2015. As part of the transaction, QuattroR will also acquire part of the equity-like instruments underwritten by the credit institutions on the occasion of the company’s debt restructuring in 2015.